Digital River has acquired Vancouver based LML Payment Systems in an all-cash deal, with an aim to boost its online payment processing base.
Digital River’s president and COO Tom Donnelly said, "We fully intend to leverage this acquisition to offer our combined client bases new capabilities and more revenue opportunities across a broader range of vertical and geographic markets."
As per terms of the transaction agreed on 24 September 2012, the offer price was valued at $3.45 per share, or an aggregate purchase price of nearly $102.8m.
Digital River has been focused on online payment processing for enterprise and mid-sized merchants, and the consolidation of LML Payment Systems will enable it to extend online payment services to businesses of all sizes.
The company will now be able to handle over $20bn in online transactions for tens of thousands of companies across a broad range of industries, including software, consumer electronics, government, utilities, event registration and mobile payments.
RBC Capital Markets offered financial advice to Digital River, and William Blair & Company served as financial advisor to LML Payment Systems.